REINSURANCE INTERMEDIARY BROKERS AND MANAGERS – FIRMS

TYPE AND CLASSES:

00-65 Firm Resident Reinsurance Broker

00-66 Firm Resident Reinsurance Manager

00-67 Firm Non-resident Reinsurance Broker

00-68 Firm Non-resident Reinsurance Manager

Florida Statutes 626.7492 defines a “REINSURANCE INTERMEDIARY
BROKER FIRM” (RIB) is a person of the firm other than an officer or
employee of the ceding insurer, who solicits, negotiates, or places
reinsurance cessions or retro cessions on behalf of a ceding insurer
without the authority or power to bind reinsurance on behalf of the
ceding insurer.

Florida Statutes 626.7492 defines a “REINSURANCE INTERMEDIARY
MANAGER FIRM” (RIM) is a person of the firm who has authority to
bind, or manages all or part of the assumed reinsurance business of
a reinsurer, including the management of a separate division,
department, or underwriting office, and act as an agent for
reinsurer whether known as a reinsurance intermediary manager,
manager, or other similar term.

Each majority owner, partner, officer and director of the
agency must submit a resume.

The following person are not considered RIMS:

Employee of the insurer.

Manager of the U.S. branch of an alien insurer.

Underwriting manager who manages all the reinsurance
operations of the reinsurer, who is under common control with
the reinsurer subject to the Holding Company Act and his
compensation in not based on premiums written.

Manager of a group, association, pool, or organization of
insurers engaging in joint underwriting or joint reinsurance
which is subject to examinations by the insurance regulatory
authority of the state in which the manager’s principal business
is located.

RIB’S do not have to be licensed if they are one of the
following:

Have an office if Florida and hold any “producer’s” license
issued by Florida. This would include any resident agent license
issued in Florida; or

Have an office outside of Florida and they:

Are licensed by Florida as a resident or non-resident
“producer” in Florida.

Are licensed as a “producer” in a state with a
substantially similar reinsurance intermediary law.

RIM’S do not have to be licensed if they are one of the
following:

A Reinsurer domiciled in Florida if they are licensed as a
resident or non-resident “producer” in Florida.

A Reinsurer domiciled outside Florida if their office is in
Florida if they are a licensed “producer” in Florida.

A Reinsurer domiciled outside Florida if their office is
outside Florida if:

They are licensed by Florida as a non-resident agent or

They are a licensed “producer” in a state with a
substantially similar reinsurance intermediary law.

The definition of “producer” is an agent, broker or reinsurance
intermediary licensed pursuant to applicable provisions of the
insurance code.

SPECIAL REQUIREMENTS

RIM’S must maintain errors and omissions insurance in an
amount of 20% of the estimated premium volume subject to a
minimum of 10 million dollars (the RIM must furnish a copy of
the declaration page of the policy).

RIM’S and RIB'S must furnish character and credit reports for each
person who is applying for a license for the first time for a
5-year period immediately prior to the date of application for
license
made by an established and reputable independent reporting service, relative to the individual if a partnership or sole proprietorship, or the officers if a corporation or other legal entity.

RIM’S must list on the application for license an estimate
of the premium volume for the first 12 months of licensure.

RIM’S and RIB'S are required to file a “Consent and Agreement In – Re
Service of Process” under the laws of Florida. Fingerprints and a resume are required
for each officer, partner and director of the firm.